To cease the effect of 03 non-lending needs in Circular 06 in Vietnam

To cease the effect of 03 non-lending needs in Circular 06 in Vietnam

The implementation of Clauses 8, 9 and 10 of Article 8 of Circular 39/2016/TT-NHNN will be suspended, regulating the lending activities of credit institutions and foreign bank branches for customers (added according to Clause 2, Article 1 of Circular 06/2023/TT-NHNN) from September 1, 2023, until the effective date of the new legal document regulating these problems.

Specifically, the regulations on non-lending needs in Circular 06/2023/TT-NHNN will cease to be effective as follows:

- To pay for capital contributions, purchase or transfer capital contributions of limited liability companies or partnerships; contributing capital; purchasing or receiving the transfer of shares of joint stock companies that are not listed on the stock market or not registered for trading on the Upcom trading system.

- To pay capital contributions according to capital contribution contracts, investment cooperation contracts, or business cooperation contracts to implement investment projects that do not meet the conditions for putting into business according to the provisions of law at the time the credit institution decides to lend.

- For financial compensation, unless the loan fully meets the following conditions:

+ The customer has advanced the customer's own capital to pay and cover the costs of implementing a business project, but the costs of implementing this business project arise within 12 months up to the time the credit institution decides to lend;

+ Expenses paid and paid with the customer's own capital to carry out business projects are expenses using loan capital from a credit institution according to the capital use plan sent to the credit institution to be considered for medium- and long-term loans to implement that business project.

Circular 10/2023/TT-NHNN takes effect on September 1, 2023.

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